August 1st, 2008

mathmo

*How* much?

I frequently get sent invitations to take out a personal loan, which I laugh at (because the interest rate quoted is typically about twice what I'd get if I just went to the bank) and then throw in the recycling bin. This one takes the biscuit, though:

*Example. Cash loan amount £300.
56 weekly repayments of £9. Total amount payable £504.

Typical
183.2%APR

Of course it turns out to be one of those pernicious cash loan companies who come round to your door every week to collect the money. And the maximum loan amount is £500, which is typically the minimum available from a reputable bank. But where on earth does the number 183.2 come from? It doesn't seem to add up.